Ask Question
30 January, 18:17

Karvel corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of august, karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours. As a result, karvel would have:

+4
Answers (1)
  1. 30 January, 18:47
    0
    It is given that Karvel corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of August, karvel estimated total manufacturing overhead costs at $300,000 and total machine-hours at 75,000 hours. It means the allocated overhead cost for 75,000 hours shall be $3,00,000.

    Now Actual results for the period were manufacturing overhead costs of $290,000 and 75,000 machine-hours.

    As a result, karvel would have Over applied Overhad (300,000-290,000) = $10,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Karvel corporation uses a predetermined overhead rate based on machine-hours to apply manufacturing overhead to jobs. For the month of ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers